tv Bloomberg Markets Balance of Power Bloomberg July 20, 2018 12:00pm-1:00pm EDT
shery: president trump last china, the eu, and the u.s. federal reserve, his message on rates and currencies. playing nice with vladimir putin, president trump intensifies the uproar over his meeting with the russian president by extending an invitation for a second summit. can democrats take the house? we will hear from a democratic candidate in a key district. ♪ kevin: -- shery: twets and more -- tweets and more terror threats, accusing of currency manipulation before taking a swipe at the federal reserve interest rate hike after the president already threatened to impose tariffs on all of chinese imports. two sorted out is our business
week economic editor. i have lived in several consuls -- countries before coming to the u.s. so it is not unusual for government to meddle in monetary policy but huge in the u.s., breaking two decades of traditions. what are the ramifications? >> a risk it could backfire on donald trump and the reason the president refrain from criticizing the federal reserve, the more they convince everybody the federal reserve will go easy and keep rates low, more markets worry the rates will be too low and inflation will kick in. the bond vigilantes say we are bond pricesat and will follow so they sell the bonds and interest rates go up. the result is the opposite of what the president is trying to achieve. or the federal reserve will see what is happening and want to prove it credibility and
preemptively raise rates. either way, the president loses. shery: and backs the chairman against the corner. his motives will be questioned. now, the president is talking about $500 billion worth of tariffs on chinese goods. isn't that the amount china exported? >> dollar for dollar the entire sum. the more -- if the president somehow succeeds in reducing the trade deficit, that would tend to strengthen the dollar. he wants the dollar to be lower. it is a case of mixed motives and messages. i do not think he has thought it through. earlier thisin: week when jay powell testified, he got compliments for being boring. house financial services
committee chairman says you are doing a good job and staying out of the political fray. anthony has not taken the bait. the fed has not in getting a tit-for-tat with the president. peter: yes, he has been around long enough to know you do not get in a war with the president. the best thing to do is keep his head down and keep raising rates as needed to keep the economy from overheating. as much as possible, put this aside and do the job. kevin: with regards to the tariffs, when you are looking at this, what i hear from sources in the administration, they feel the u.s. has the upper hand in terms of negotiations with china. a coalitioney have of congressional support on the issue of intellectual property. is way too far, from what i'm hearing from
republicans. peter: you are closer than i am but it makes sense that when it starts to get numbers that high, nobody wins. if it makes a threat and the chinese backs down. it does not win if the chinese match u.s. tariffs dollar or dollar, then everybody loses. shery: it seems the president is reeling from the backlash from the meeting with vladimir putin. this fight the fact he may want better relations with russia, we hear the russians could be hedging against potential more sanctions. they are liquidating their dollar assets at a record pace. peter: i do not know that. small is relatively economic player. much more feared as a military or strategic threat to the united states. yes, i can imagine that happening. shery: peter coy, thank you so
much, talking about everything going on with president trump. peter: thank you. kevin: sticking with president trump, let's get to our washington, d.c. bureau. there has been questions about president trump meeting with vladimir putin. is it round two at the white house? an imitation a fairly for vladimir putin to visit later this year but we do not have details on the date. the most interesting aspect on the announcement was the president top spy chief, dan coats, p to be taken by surprise. -- appeared to be taken by surprise. kevin: he had no clue. stage when hen heard the news and asked to have it repeated and said that will be big news. kevin: a republican from texas
said, as an undercover officer in the cia, iso-russian intelligence manipulate many people but i never thought i would see the day and the american president would be one of them. from aning comment coming republican lawmaker. the senate reviewed the rebukedt -- reviewed -- the president. what do you make of that?
shery: gives them the upper hand in shaping the narrative. that nobodyis it wants that the president does not want this meeting on the record? >> the russians are defining what happens" was a read to. it has been up to u.s. officials who have appeared not to have been briefed on what happened to try to explain or downplay what the russians are saying. that -- yousaid should not listen to the russian ambassador. when the director of national intelligence says he did not know what happened in the one-on-one meeting, he did not follow up that by saying, i have been briefed by the president and understand what happened. he left it out there as i do not
know what happened in the meeting. that is a problem for the u.s. intelligence to meeting and diplomats. shery: how well is the administration doing to spin this? >> it is looking like too little, too late for a lot of people and i think the announcement yesterday that likely beputin will coming to washington or has been invited later this year was a huge surprise. that on that -- you saw the face of dan coats at the security form yesterday. people will want to know, if vladimir putin is coming, what are the goals of that meeting and can we make sure there are other people in the room to verify what is agreed to or not. shery: so many issues standing between the u.s. and russia, whether a nuclear arms reduction or the issue in ukraine and what is happening in crimea. meetingnt a substantial
to occur with russia, what should be on the table? administration needs to get together before hand and spell out what its goals are. they do not have to announce it to journalists but they have to be organized and have a real plan going into the meeting of what they want to get and what can be announced. what they think they can tell the world afterwards. we do not know if there was an agreement about ukraine or crimea and what they agreed to or did not in terms of syria. the president said russia would be helpful with north korea feared some signs are that the denuclearization effort in north korea has stalled at best feared -- best. people will want to talk to the president and make sure we have a sense of what our goals are going in and what week in tell the world coming out of it so that russia does not define what happens. kevin: in terms of concrete policies, particularly with the
sanctions not being lifted against russia with regards to crimea. i do not want to ignore the politics. shadow over this and the differentiation between have a president is communicating with what the intelligence community is saying. but policy, not much has changed in terms of the the sanctions. >> not as far as we know, the administration says there were talking about issues such as nuclear agreements and extending the start treaty, some talk about syria. we do not believe there were carpet agreements. it seems like u.s. -- concrete agreements. only tellings are us in a partially informed basis because they were not in the room. kevin: thank you for your time. shery: u.s. markets, u.s. stocks coming up session highs but still in the green feared --
green., >> we have gains for the major averages, on the week, looking at gains. the third up for major averages in a row in a week. the 10 year yield. intraday chart, president trump has been criticizing the fed, saying rising rates are helping the u.s. loses competitive edge. you would think that would make the 10 year yield go lower but is that it is up for basis points -- four basis points. investors, thet market believes the fed will not be influenced by president trump's comments. james bullard said something to that extent. where we are seeing an influence, the emerging market world index. up 1%.
they are more sensitive to interest-rate, when they rise, not good for these stocks. this adjusts some investors -- suggests some investors think we will see rates drop at some point. fromchart comes to us katie. emerging-market etf is on top. , downs had a rough road 7% but she thinks it will hold and bounce back up. that would suggest the dollar will probably drop which would imply that perhaps rates will drop. interesting to see how this plays out. movers back home, amazon, on a , jpmorgan upday 1.4% and the tailwind of the rising rates, honeywell up 3.7%. they have a strong quarter.
shery: this is bloomberg markets: balance of power. i am shery ahn a new york. kevin: i am kevin cirilli in washington. >> the new york times reporting president trump's longtime attorney michael cohen secretly recorded a conversation with donald trump during which they spoke about payments to a former
playboy model. the woman claims she had a nearly year-long affair with donald trump getting in 2006 shortly after his son was born. they say the conversation took place two months before the 2016 election and the paper says the fbi seized the recording this year doing a raid on his office. donald trump has denied the woman's claims that they had an affair. the russian defense ministry has released a video showing the test launch of an updated missile-defense unit in cause expand -- kazakhstan. they said they were making progress on new weapons, among them a high power laser weapon system and a nuclear powered cruise missile with "unlimited range." they were first unveiled in a speech by vladimir putin back in march. the japanese prime minister is the latest will lead to speak out against president trump's proposed automobile tariff. he said they would backfire and
harm not only american jobs and the economy but also devastate the global economy. he said he will keep explaining to president trump that japan's auto industry does not threaten america's national security. in branson, missouri, the sheriff's office says the bodies of four people missing since a tourist boat capsized have been found. the death toll is that 17. the boat overturned in a lake last night during a powerful thunderstorm. winds reportedly top 60 miles per hour. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. shery: uncle sam -- kevin: uncle sam wants austin. they were selected from a list of 15 possible locations including philadelphia, the new
four-star command will tackle future -- joining us is u.s. army undersecretary ryan mccarthy. this army and why is futures command center, what will it do? >> the u.s. army is at an inflection point. the systems and the way we are design was developed act of 1973. -- back in 1973. weapons development is slow in a criminal and does not move at the speed of the information age and over the last couple of years, army leadership has been looking at ways to use those processes and move information closer. move faster and have better collaboration and interpretation of requirements to develop the systems. the restructuring that the army is undertaking is the largest
and most complex in 45 years. kevin: when you look at the contractors, boeing, lockheed martin, what does it mean for them in terms of how the private-public partnerships will impact this? >> it will improve our relationship with them. we will be a better, faster, what more informed -- and more informed customer in how we work with vendors. we developed cross-cultural teams, people who did the requirements, research, development, instrumentation, and acquisition officials and we developed teams and this is the way move -- we can move information faster. we have one bellybutton for these two meet with all of the stakeholders associated with a berkshire meant of an end item -- procurement of an end item. shery: how does the city of
austin achieve the things you have mentioned? >> we developed a formula or what we needed and that type of footprint, the type of culture. an outside firm helped us put a formula together and we brought in a federally funded research to validate this one in the. -- this formula. place withge density talent, entrepreneurial investment, accessibility to the footprint, and can help us get closer to academia and business. shery: it is no secret that taxes is well represented on the senate and house defense committees -- texas is well represented on the senate and house division -- defense committee, what was a to stop this from?-- political considerations >> with close ties
to austin recuse themselves and a small group of people who work directly for me and we follow the data. we developed a formula with quantitative analysis. austin scored the best in all of the criteria. kevin: you went everywhere. in philadelphia, you got a nice taste of a cheesesteak. >> i led a contingent around the country to five different locations and all of the mayors. kevin: you have to know your area. >> we got a taste of the eclectic foods around the country. russia, they are restructuring and we organizing. this is the most expansive restructuring in decades, how will it make sure we are protected against the new type of warfare we are seeing on cybersecurity? >> first, from a management standpoint.
we have the stakeholders with formal relationships, closer together, bringing the innovators closer from industries to the men and women who run these processes. , we the standpoint of speed are better informed and will make decisions faster to keep pace. the army leadership conducted countless studies to find priorities we needed. priorities. six we conducted countless reviews. 80% of our research funding against the priorities. we have communicated very thoroughly with congress and have a clear understanding or we want to go and are getting a lot of support. shery: dan coats warned of a potential cyber 9/11. how big of a threat is this in your view? >> cyber domain combat has been something over the last decade
that the department has invested greatly in. the army has made vast investment of developing cyber talent and but we call the total force, active reserve and guard, we are trying to get the best and brightest in the country to join the army and help us. significant investment from an army standpoint. much. thank you very u.s. army undersecretary ryan mccarthy, we appreciate your time. shery: still ahead, fred hochberg ways in on everything from germany to midterm elections. this is bloomberg. ♪
consumer staples and financials leading the gains. we have comments from the president's escalating a trade war and that positive earnings results that sent stocks higher as been sustained. kevin: tweets and trade. still ahead, my interview with fred hochberg. we talk tweets and trade and more. from washington and new york, this is bloomberg. ♪ retail.
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let's get to first word news with mark. mark: he accused china and the eu of manipulating currency. that contradicts the treasury department report released in april. the president also criticized the fed for raising interest rates and taking away the country's competitive edge. angela merkel says nato's collective defense clause applies to all members, not just big members and added she is glad to have montenegro in the alliance. for her remarks came in response to president trump's comments this week when he said the tiny balkan country's membership in the alliance means montenegrin "very aggressive -- montenegro "very aggressive people could start world war iii because of nato's ritual defense pact." there is supposed to be an update on brexit talks today as the eu urges member states to prepare for a possible disorderly british exit from the block, in which no deal on
future relations has been agreed. brexit the gauche nations have been at an impasse. endedt in germany has extradition proceedings against the cattle and president. a spanish judge with through an arrest warrant. spain wanted to try him for rebellion for last year's failed independence movement. global news 24 hours a day on-air, and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. back to you in washington. kevin: thanks. earlier, i sat down with the former export-import chairman and i got his take on u.s.-china trade relations. fred: a really bad place. i see only escalation. i do not see an exit ramp that gives people a discreet way of coming off an increasingly escalating situation.
i do not see it as a good thing at all. good thing globally for the economy. it may be good for donald trump and not the economy. kevin: $500 billion, that is what president trump said. he was willing to attack on $500 million. fred: that means your iphone will have a tariffs on it. he says that, wait, china has taken advantage of us, and you would agree with us, our intellectual property, for far too long. all of this doom and gloom necessarilyis not with the numbers but they argue the u.s. has the upper hand. fred: i think this is a myth. the idea that the u.s. has the upper hand and can call the shots around the world and bully people is over. our power lies in our legitimacy, that we actually did it with soft power and illegitimate way. and the more we act illegitimately, the more we lose
allies. kevin: president trump has said he prefers to have high lateral trade negotiations. he has seen the multilateral response. look at the european union and their deal with japan earlier this week. the president of the european union commission is going to be at the white house next week. what do think will happen specifically with regards to the auto sector? fred: first of all, we will not know about the auto sector until september and that will be a key thing to watch, what happens with the auto sector, but the auto sector is probably also different than like the pickup trucks, which has had tariffs for a long time because americans are one of the few people were your mom or their moms drive pickup trucks to go grocery shopping. kevin: for the record, i'm on this not drive a pickup. seriously, germany is not on board with this. they are saying do not get rid of the tariffs. fred: i mean, the challenge with are theys -- tariffs
create artificial prices and friction. thee is one thing to let domestic industry get up to speed with them, but that does not seem to be the case. here, it seems to be in punitive. china has acted as an illicit player in many ways and they're not playing by the rules, but a is a blunt instrument in terms of trying to remedy that. i interviewed the house financial services committee chairman, a republican used to clash with a lot on capitol hill, that you agree on this. this is not just a partisan issue. fred: i agree, something we can agree upon. what is the latest on the export-import bank? fred: it was a hearing yesterday, and they have indicated that they are inclined to be supportive of its, which is a good thing. i do not fully understand being supportive of kimberly reed, but
not the inspector general and other board members. kevin: you were one of the most influential democratic donors. we are at the cusp of the midterm election. we are into the new presidential cycle. i have to be frank because when we talk about trade, a lot of the democrats, the base, they do not like nafta. they do not like that china is taking advantage. you go into michigan, ohio, pennsylvania, where the president won, so what is really going on? how do democrats appeal to those folks who are not against nafta? fred: i would push back on you. the polls show democratic voters tend to be more pro-trade than republicans today.we had the flip and leadership in the house . the democratic members tend to be more nt trade. -- more anti-trade. we have republican members who are more free trade than republican voters, so we had a
real challenge because the voters and members are out of sync. kevin: last question, with the russia follow, in terms of fundraising for the democratic party, is this just about fundraising? this talk of treason? fred: i am not the expert on that area, so i think you should ask other people. i like to get fair-minded people in congress and i also think is to startrtant letting people have a real voice. kevin: that was my interview with the former export-import bank chairman fred hochberg. he still thinks democrats can catch up and flip the house, confident. shery: we will be talking about that in a couple of minutes. coming up, democrats banking on a blue wave in november and that path the majority go straight to california. we will talk with the democratic candidate taking on mimi walters, next. this is bloomberg. ♪
is bloomberg markets: balance of power. i am kevin cirilli in washington. shery: i am shery ahn in new york. time for stock of the hour. shares of the investment company are the worst performer in the s&p 500 and they have the worst day in two years after reporting earnings and announcing a deal.abigail doolittle joins us with more on what is happening. earnings report is lackluster for state street, but let's dig into earnings because there is something interesting happened with their profitability picture. it was a lackluster quarter and missed revenue slightly. they beat earnings. they took certain one-time charges, which should help them for the future quarters since they took them in
this quarter. they also boosted their projects to $20018 cost savings million from $150 million, so that is good. we can see the effect on the earnings picture in a bloomberg. these are earnings per share on an annual basis. this is the quarterly view, but we see this going in the right direction and that is helped by that cost savings picture. overall, steep compression from the asset management business hurting their services and 85% of business investment services and technology race. shery: let's talk about the deal now because they are hoping to acquire what? charles rivers systems. abigail: they have made that acquisitions and investors are not liking that. that is why shares are lower. this software puts them into the middle and front office instead of the back. you see this chart and you can see that plunging below the 200 day moving average. the reason investors are not liking the deals is
because from a long-term perspective, it makes sense because it will be a more profitable business for them, but it will not be possible until 2021 depending on how you look at the deal, and they are canceling their buyback and issuing more equity. again, long term could be a positive year but there are certainly some short-term pains. shery: thank you. of course, at 2:00 p.m. eastern today, we will speak with state 's president and ceo. a clear pattern is emerging as the primaries wrapup. democrats are looking to take back the majority, targeting thatlican held districts hillary clinton carried in 2016 with a record number of women running for office. one is taking on the only republican woman candidate mimi walters. up majorter has picked
like elizabeth warren. she joins us now from irvine. thank you for being with us. the first and biggest question right now will be, move your progressive brandon politics be appealing enough -- progressive brand of politics be appealing enough to win the general election? katie: absolutely. we are hearing families concerns about everyday economic issues on how trump's actions are hurting their pocketbooks and are not in line with their values. the are concerned about the rising cost of health care, trump repealing environmental protection to get the kids clean air and water, and they are concerned about his trade policy. folks are concerned about basic consumer protections and how trump is attacking some of those institutions. kevin: with regards to those institutions, earlier, president trump criticized the federal reserve. what do you make of that? katie:
the federal reserve is the cornerstone of our economy. their job is to govern our monetary policy and help create the foundations that american businesses need to prosper, and the federal reserve should be protected from partisan politics are bickering. the job of the federal reserve is to take a long-term view to help americans and their economy prosper. it is important to protect their sound decision-making's and long-standing historical processes. where the professor -- it is an interesting debate going on right now in the democratic party, shouldn't move far to the left? should go to the socialist wing of the democratic party? or should it be more centrist? progressive?ialist how would you define yourself in terms of the democratic tension going on? katie: here is how i think about it. whereericans, no matter
they live and how they vote, once an economy that works for them. i have seen this on my work as a consumer advocate. nobody likes to be ripped off. i think what we are seeing is across the board, families in orange county, regardless of how they voted or what industry they work in, they want a fair shake in the economy. they want health care that is stable. kevin: i hear you, but where centrist?ocialist or katie: i think my job is to talk about my workkatie:s for family. i have a long track record for standing up for families who were to date, helpingin foreclosure, making sure big banks follow the law. those of issues we will be talking about. trail,m on the campaign i hear families wanting to talk about health care, amy walters' vote for the disastrous tax plan that will worsen housing affordability prices. they want to talk about the
repeal of environmental protections. that is where the conversation is. shery: yes, the key question will be, will democrats be motivated enough with all of those ongoing issues to actually come out and vote in november? we saw huge increases in turnout in the primary. it was an open primary in california. republicans declined, but independent and democratic voters turned out, and we are competing for all of the votes, not just democrats. we know all orange county families are hurt by mimi walters' terrible vote on the tax plan against our interest with the health care plan, so we will reach every voter we can because they will be hurt by the policies.what about the supreme court nomination process shery:? you expect it to -- shery: what about the supreme court nomination process? katie: i think a lot of families
are concerned we make sure we protect the woman's right to choose.women's health care is an important issue . it has widespread support in california for making sure planned parenthood is a lot to do its job of providing women's health care and primary care to men and women. we are all concerned about what the confirmation could mean for those links funding rights -- of those long-standing rights. shery: thank you, katie porter, for your time. assethead to the jpmorgan management trading floor with jonathan ferro, posting bloomberg's real yield at 1:00 p.m. eastern. what you have for us today? jonathan: i am looking forward to it. i have got to say the president tweets seem to have more of an impact than chair powell himself. the president is doubling down his assault on federal reserve independence in the minds of many.
is key question for markets whether it really has an impact on what chair powell does next. i will put that question to above michael here at jpmorgan mr.t management, -- to michael here at jpmorgan asset management, along with others. it is 30 minutes dedicated to fixed income. we are really looking forward to the program just around the corner. shery: we are looking forward to it, thank you, jonathan ferro, hosting bloomberg's real yield today at 1:00 p.m. eastern. kevin: coming up, fcc is raining on sinclair's parade. we have what the hearing order could mean for the sinclair tribune merger, ahead. this is bloomberg. ♪
markets: balance of power.i am kevin cirilli in washington, d.c. shery: i am shery ahn in new york. kevin: they have pumped the brakes on the sinclair tribune eggmerger, already the local television operator in the nation. sinclair signed off on a $3.5 billion purchase of rival tribune media. the fcc is calling into question how transparent sinclair was to regulators and is ordering a hearing. that could take months. joining us to weigh in his bloomberg's sec reporter, thank you. are they going to get the merger done or not? >> that is the question, we don't know. the fcc late this heavy hit on the merger the last few days, sending them to the hearing, which could take a long time. has no telling how long it will take. months, plural, for sure. sinclair said this was
troubling and we have not heard from sinclair -- tribune said this was troubling, and we have not heard from sinclair. kevin: is sinclair going to get that cable news network? tv, which some people might think be the kernel port of arrival to fox news. that is a good question. there holding on so far. they seemed determined a leader in the week and put out statements pushing back hard on the fcc, saying, we do not miss her as i anything -- we did not misrepresent anything. it sounded like they were ready to fight monday or tuesday but have not heard anything since. so how do they move on and get the big television stations like an new york, los angeles, so we will see. the role has been beneficial for the business model sinclair has been working with. >> that is true. for a long time, since before he been norman, he has
friend of broadcast regulation, so he has gone about knocking down broadcast regulations with number of look -- actions amongst the republican seaweeds at the fcc. he has been very friendly to broadcast but this is the first ds talked about the merger. he held his fire on the merger until this week and now we hear he is opposed to and is not quite say that but says he has to go to the hearing which is tantamount to being opposed. shery: to have insight on why pai is taking the approach? todd: the fcc says he looks at the rules and facts and ask along the lines -- and reacts along those lines. they put out the statement sending the hearing to the arduous merger with no further comments from mr. pai. we are left to wonder. , the: how crucial is this developments we have seen this week because shery makes a great
points, and what does this really mean in terms of putting the brakes on this. there is still a way sinclair could win. todd: everybody seems to think it is a long shot, the investment community, to widespread between the purchase price and work tribune is trading today, the purchase price. sharing's are really rough. at&t withdrew from the deal in 2011 on the threat of the hearing. big companies have withdrawn on the threat of hearings. lots of money and lots of lawyers. know.ir -- i don't they have been pushing hard for this and maybe they are willing to go through the entire process but this tribune want to wait for these extra months? the deal has been pending over a year already. big question marks. shery: thank you, todd shields. todd: thank you. shery: breaking news, mike pompeo saying that he is hopeful president trump and president
putin, is that meeting takes place in the fall, of course, there has been backlash from the public and republicans when president trump intensified by hereing president putin for second meeting and now mr. pompeo is hopeful the meeting was in the fall, so that could be happening. plenty to discuss. kevin: we are going to be hearing a lot more from secretary pompeo, particularly next week when he is scheduled to testify on capitol hill and take questions, not just from republicans, but democrats. that will be fascinating to watch. also breaking, the rnc has chosen charlotte to host the convention, charlotte, north carolina, in 2020. never too early to start talking about the 2020 cycle. that is the state that the president carried by 3.5 percentage points against craddick nominee hillary clinton. shery: there will be plenty to
talk about next week, starting with the g20 meeting happening tomorrow, or secretary mnuchin will fly support osiris week -- will be flying tobueno b buenos aires. the president not really likening that strength being a disadvantage to the united states, so we will talk a lot on g20, and given the trade tensions taking place in the background, we will have the european commission president in washington next week. kevin: we cannot forget him. want to be a fly on the wall because of the interesting back-and-forth going on. one interesting thing about the president weighing in on the fed , there is a small faction of the republican party that that speaks to. case in point, senator rand paul, who pressed the fed about the libertarian leaning faction of the republican party. they want more transparency at the fed. so far, chairman powell has not taken the bait.
wow. the president tweeting about the federal reserve, never a dull moment. shery: and we do have potential auto tariffs coming into play. and the automakers will be meeting next week, as well. in the meantime, sign up for the balance of power newsletter at bloombergpolitics.com or at bloomberg.com/politics. get the latest on politics every day in your inbox. coming up, bloomberg's real yield from the trading floor, live at 1:00 p.m. eastern. if you missed out on our charts, gtv is your function. live from new york and washington, this is bloomberg. ♪
morgann: live from jp asset management this is , "bloomberg real yield." coming up, stepping on the fed's independence. the president pushing back. chairman powell testifying that rate hikes will continue. -- meeting presidential resistance. the u.s. struggling to find stability. we began with a stepping on fed independence. >> ultimately it puts into question what the fed and